All of the Following Are Reasons Why SOX Was Enacted

question 53

Multiple Choice

All of the following are reasons why SOX was enacted, except:

• A)Enron's CEO, Jeffrey Skilling, claimed he did not know about the company's financial shenanigans because he was not involved in their accounting
• B)Public perception was that auditors were having conflicts of interest with respect to the auditing and consulting services they provided
• C)The CICA has long been thought to be ineffective
• D)Congress wanted to restore investor confidence in the wake of a rash of corporate scandals

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Definitions:

Stability

The state or quality of being resistant to change, especially sudden change or deterioration, within a particular environment or context.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Welfare

Governmental provision of economic assistance to individuals in need.